Question

Q1, External factors that Michael Porter defines as five forces affecting competitive strategy, which also impact marketing decisions, include ________.

A) industry competition, industry collaborators, industry partners, customers, and suppliers

B) competition, threat of new entrants, suppliers, customers, buyers, and threat of substitute products and services

C) Legislation, rules, competition, buyers, suppliers, and customers

Q2, ________ are the most important actors in the company’s micro-environment because they hold the most influence over the entire marketing mix.

A) Customers

B) Suppliers

C) The public

D) Lawmakers

Q3, The single-most important demographic characteristic of the U.S population, at about 321 million, affecting the marketing mix is ________.

A) the collapse of Generation Z

B) rising birthrates

C) the changing age structure of the population

D) shorter life expectancies

Answer 1

Q1. Ans.: B) competition, threat of new entrants, suppliers, customers, buyers, and threat of substitute products and services

The five forces that are defined in the Porter’s five forces model for competitive analysis are rivalries amongst existing competitors, threat of new entrants, threat of substitute products or services, bargaining power of suppliers, and the bargaining power of buyers.

Q2. Ans.: A) Customers

Microenvironment includes the actors that are close to the firm affecting its ability to serve. Customers are the most important agent in any company’s microenvironment as they have the highest level of influence over the company’s marketing mix.

Q3. Ans.: C) the changing age structure of the population

The rapidly aging US population, with higher proportion of customers aged 65 and above, is the single most important demographic characteristic that affects marketing mix.